World Bank Forecast for India's GDP Growth Reaches 7% - Key Insights from Delhi News
World Bank's Upgraded GDP Growth Forecast
The World Bank has forecast India's GDP growth at 7% for the 2024-25 fiscal year, reflecting a notable upgrade from previous estimates. This positive outlook comes despite a subdued external environment and the risks posed by geopolitical tensions and inflation. As external pressures mount, it remains crucial for India to foster a resilient internal market.
Impact of Public Investment and Services Sector Expansion
A substantial expansion of public investment in recent years is anticipated to crowd in corporate investments, particularly within the growing services sector. The expansion of Global Capability Centers and initiatives like the PM Gati Shakti plan are crucial in enhancing logistics infrastructure, aiding in overall economic stability.
Inflation Trends and Their Influence
Headline inflation is expected to decrease from an average of 5.4% in FY23-24 to 4.5% in FY24-25, further supporting economic growth. The recovery of agriculture and the decline in inflation may also lead to an uptick in private consumption growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.